Using the data in the Option 2 Spreadsheet (linked at the bottom of the page), you are to: Provide the journal entry to record the asset transfer Calculate the amount of goodwill or bargain purchase.

Assume that Parent Company decides to acquire Sub Company for $564,000 of debentures
Sub Company Balance Sheet				Prepare the consolidating journal entries for a 100% Asset Acquisition
Assets, Liabilities & Equities	Book Value	Fair Value		Account	Amount	DR	CR
Cash	$40,000	$40,000
AR	$15,000	$10,000
Inventory	$105,000	$200,000
Land	$60,000	$100,000
Plant and Equipment	$400,000	$300,000
Less: Accumulated Depreciation	-$150,000
Goodwill	$10,000
Patent	$0	$0
Total Assets	$480,000	$650,000
AP	$50,000	$50,000
Common Stock	$100,000
Additional Paid In Capital	$60,000
Retained Earnings	$270,000
Total Liabilities & Equity	$480,000
Assume that Parent Company decides to acquire Sub Company for $580,000 of debentures
Sub Company Balance Sheet				Prepare the consolidating journal entries for a 100% Asset Acquisition
Assets, Liabilities & Equities	Book Value	Fair Value		Account	Amount	DR	CR
Cash	$40,000	$40,000
AR	$15,000	$10,000
Inventory	$105,000	$200,000
Land	$60,000	$100,000
Plant and Equipment	$400,000	$300,000
Less: Accumulated Depreciation	-$150,000
Goodwill	$10,000
Patent	$0	$0
Total Assets	$480,000	$650,000
AP	$50,000	$50,000
Common Stock	$100,000
Additional Paid In Capital	$60,000
Retained Earnings	$270,000
Total Liabilities & Equity	$480,000
Assume that Parent Company decides to acquire Sub Company for $625,000 of debentures
Sub Company Balance Sheet				Prepare the consolidating journal entries for a 100% Asset Acquisition (using Cash)
Assets, Liabilities & Equities	Book Value	Fair Value		Account	Amount	DR	CR
Cash	$40,000	$40,000
AR	$15,000	$10,000
Inventory	$105,000	$200,000
Land	$60,000	$100,000
Plant and Equipment	$400,000	$300,000
Less: Accumulated Depreciation	-$150,000
Goodwill	$10,000
Patent	$0	$0
Total Assets	$480,000	$650,000
AP	$50,000	$50,000
Common Stock	$100,000
Additional Paid In Capital	$60,000
Retained Earnings	$270,000
Total Liabilities & Equity	$480,000